State Bank of India (SBI) offers Flexi Deposit Scheme for customers. This product is similar to recurring deposit (RD) but instead of a single fixed instalment every month, user can decide to vary his/her instalment amount and even the number of monthly within the annual sum defined, according to SBI's official website - sbi.co.in. Under RD, one needs to deposit a fixed amount at fixed intervals. The minimum instalment amount is Rs. 500. For a financial year, the minimum deposit amount is Rs. 5,000 and maximum deposit amount is Rs. 50,000. Customers are allowed a maximum of 10 instalments per year.
Key things to know about SBI's Flexi Deposit Scheme:
Tenure: Deposits can be made anytime during a month and any number of times in SBI's flexi deposit account. The minimum tenor is 5 years and maximum is 7 years.
Rate of Interest: The rate of interest is same as applicable to term deposits. The interest rates are compounded quarterly.
| Term | Interest rate for general public w.e.f. 30.07.2018 | Interest rate for senior citizens w.e.f. 30.07.2018 |
|---|---|---|
| 7 days to 45 days | 5.75 | 6.25 |
| 46 days to 179 days | 6.25 | 6.75 |
| 180 days to 210 days | 6.35 | 6.85 |
| 211 days to less than 1 year | 6.4 | 6.9 |
| 1 year to less than 2 year | 6.7 | 7.2 |
| 2 years to less than 3 years | 6.75 | 7.25 |
| 3 years to less than 5 years | 6.8 | 7.3 |
| 5 years and up to 10 years | 6.85 | 7.35 |
Premature withdrawal: Customers also get the facility of premature withdrawal. The rate applicable in case of premature withdrawal is 0.50 per cent below the rate applicable for the period of the deposit has remained with the bank.
Penalty charges for non-deposit of monthly instalments: The penalty charges for non-deposit of monthly instalments amounts to Rs. 50 per financial year, said SBI.
Facilities: With SBI's Flexi Deposit Scheme, customers get a host of facilities such as loan facility as applicable to term deposits and nomination facility. Passbook is also available for this.
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